Delaware iPoker Revenues In September Lowest Of 2014

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Tuesday, November 18th, 2014 | Written by Lucy Brown

The Delaware Lottery has released its online gaming results for September, and the news was not good with revenues tumbling by 16% to $145,022, representing their lowest levels of the year so far. From that tally, online poker reported a 16.4% fall in revenues to $32,305 compared to the previous month, while Delaware’s online casino games also generated 16% less revenues at $112,717, from $134,200 in August.

2014 Gaming Revenues

These are the total gaming revenues for Delaware‘s three online gambling sites run by three racetrack casino operations, Dover Downs, Harrington Raceway and Delaware Park. The numbers are even more worrying considering each operator has to pay an annual licensing fee of $500,000, with the state also receiving 100% of the first $3.75 million of annual internet gaming win.

Jan – $145,667
Feb – $167,333
Mar – $207,038
Apr – $240,762
May – $175,410
Jun – $187,332
Jul – $172,496
Aug – $172,853
Sep – $145,022

September’s Lackluster Results

Delaware Park may continue to lead the First State’s online gambling market, but in September the venue reported that just 193 new player registered for accounts during the month, with its revenues subsequently plunging to their lowest levels since the start of the year. From the $89,742 generated in September, online table games dropped to just $44,086, while online poker’s tally of $8,429 was its second lowest of the year behind the $7,586 collected in June. The one area of optimism, however, was video lottery which returned its best return since March of $26,524.

Dover Downs reported that 112 new players registered for accounts in September, their lowest sign-up number of 2014 so far, which was then reflected in its disappointing revenue result of $38,261. That figure was the second worst of the year behind the $34,920 earned in August, with casino games down to $12,218, online poker down to $8,429, but with video poker rising to $17,614 from the $11,775 it noted in August.

Finally, Harrington’s story provided a slight twist in the tale with its 91 new registrations representing a significant improvement over August’s total of 78. In addition, Harrington’s online revenues of $17,019 was its best result since March, with online Poker revenues of $4,745 the second highest since April, and the $10,539 from video poker the best performance since June. Online casino games, on the other hand, generated a mere $1,734, the second lowest amount of 2014.

Lack Of Liquidity Choking Industry

Delaware’s online poker industry first launched in November 2013, and this month celebrates its one year anniversary. There has been little signs of euphoria, however, as pre-regulation it had been predicted that online revenues could generated upwards of $5 million in taxes for the state in 2014, but this year Delaware has only returned a mere $1,613,913 in gaming revenues alone.

Amongst the myriad of issues plaguing the state’s online poker industry, a lack of player liquidity is seen as its most immediate problem, a difficult predicament to overcome considering Delaware’s small population of just 900,000 people. Even Nevada with 2.8 million people is struggling to maintain its online poker market and last week the state’s first iPoker site Ultimate Gaming announced its surprise exit from the business citing the prohibitive costs of operating an online poker business in ring-fenced separate states. As Ultimate Gaming Chairman Tom Breitling, commented:

“As has been the case in other jurisdictions, online poker revenues in Nevada have fallen far short of original projections. Moreover, the state-by-state approach to online gaming has created an extremely cost-prohibitive and challenging operating environment. These factors have combined to make the path to profitability very difficult and uncertain. Consequently, we have decided to cease operations.”

Increased Liquidity A Potential Game-Changer

Liquidity is the lifeblood of online poker, and without enough players around to enable good action the games will continue to be bad for the players and operator alike. Needless to say, an interstate compact bringing all three legalized online poker states of Nevada, Delaware and New Jersey together could prove a game-changer, and already Delaware Gov. Jack Markell and Nevada Gov. Brian Sandoval agreed a multi state internet Gaming Agreement earlier this year. Conveniently, Nevada’s market leader WSOP.com uses 888’s software package, while 888 is also the iGambling monopoly provider in Delaware, but unfortunately, the compact has yet to be enacted, while Nevada Governor Sandoval’s call for other states to legalize and regulate their online poker industries seems to have met with little interest, too.

Earlier this year, Sandoval even offered to help other US states set up their online poker industries, and said: “If there are states that don’t have as sophisticated a regulatory structure as we have, that’s something we can offer. If your state doesn’t have the infrastructure, use our capabilities.”